Anchun

Bestworld wrote: Volume continue to increase, anyone possibleexplainaton?

I guess it could be existing shareholders read its annual report and realize of its successful launch of two great products which Anchun is ready to commercialize this year: CO Shift Reactor and Ammonia Synthesis Reactor System. Both have immense market potential as China is trying to save energy and reduce enviornmental pollution. The existing shareholders may be taking this opportunity to avg their cost down as most of them bought high during IPO at 28cts and has been trapped there..

The real reason I am afraid is penny speculation. I am not complaining thou. The jump is too high in too short a time, typical of a penny trading. I have already divested some of my holdings. For those early movers, congrats, for those hoping to get the party now. Be careful. This is not a rerating of stock but a concept play at best now.

Vested

greenrookie wrote: The real reason I am afraid is penny speculation. I am not complaining thou. The jump is too high in too short a time, typical of a penny trading. I have already divested some of my holdings. For those early movers, congrats, for those hoping to get the party now. Be careful. This is not a rerating of stock but a concept play at best now.

Vested

Fertilizer companies have not invested much over last few yrs on productivity and with margin compressing due to lower urea price, they will have to invest in technology such as Anchun's Ammonia Synthesis Reactor (saving of around RMB60m per yr) to protect their profit margin.

What do you guys read into the 1Q results?

I highlight 1 aspect. Revenue from its Chemical Systems and Components (“CSC”) business rose 19.9% to RMB36.1 million. It is mainly due to the delivery of a low pressure methanol synthesis reactor.

So, it's one-off.....

Anchun recognises revenue only on completion of project, so the CSC segment will show lumpy results.

The CSC segment margins rose from 5.3% to 35.6%!

I suspect the cost is recognised progressively but the revenue and profit at the end of the project. That probably explains why the margins shot up !

Just my 2 cents' worth. The stock has shot up to 11 cents but I think the company has to deliver more consistent results to win back investors. The IPO price in 2010 was 28 cents. Luckily, none of my friends chased after the stock.

(Vested and stupid...)

Sorry to be a party pooper here, I seriously doubt Anchun has turn a corner, yet.

Let us look at order book, advance biliing and inventory

order book Adv. biling inventory
Q1 2013 145.3 38.1 61.3
Q4 2012 123.9 49 71.6
Q3 2012 148.3 57.1 70.1
Q2 2012 156.3 60.4 74.1
Q1 2012 141 42.1 64.14

Pre-crisis (before profits plummets)

adv piling inventory
2010Q3 141.4 97.9
2009Q4 160 95


Activities is nowhere near pre-crises level, seem more like a recording of billings then increase in business activties, at least this is what this quarter shows...

So sad...
I should have tracked these earlier...

stupid me....

the spacing doesn't work.. but you get the ideads from he numbers

After 5 qtrs of consecutive negative profits, it is a great start for Anchun for 1Q13. With serious pollution now in China, I think the petrol chemical and fertilizer companies will be forced to act in 2013 by the new leadership team come 3Q/4Q. It's large scale ammonia synthesis reactor that has proven to save RMB63m per tower per year will show to be a draw for fertilizer companies to improve margin. I expect China XLX [it's corporate shareholder] should be using it for the fourth plant being in construction now.